House Bill 106

Actions | Amendments
Last Action 03/30/22: 2nd reading, to Rules
Title AN ACT relating to the termination of automatic renewal offers and continuous service offers.
Bill Documents Current/Final
Introduced
Bill Request Number 277
Sponsors S. Westrom, B. Wheatley
Summary of Original Version Create new sections of KRS Chapter 365 to define "affirmative consent," "automatic renewal," "automatic renewal offer terms," "clear and conspicuous," "continuous service," "continuous service offer terms," "gift membership," "gift subscription," "material change," "membership," "purchasing agreement," and "subscription"; require businesses to present automatic renewal or continuous service offer terms clearly and conspicuously to consumers before purchase; require businesses to obtain the consumer's consent before charging the consumer; require businesses to provide consumers with an easy-to-use mechanism for cancellation; require businesses to provide users who purchase in one medium the opportunity to terminate in the same medium, including online termination; require businesses to provide a notice regarding term changes prior to implementation; require businesses to abide by requirements before completion of the order, except that the acknowledment may be fulfilled after order completion and notice of change must be fulfilled prior to implementation; require businesses to provide notification of the expiration of a subscription; prohibit businesses from continuing to charge consumers after the completion of singular orders, orders for a definite period of time, or the expiration of subscriptions or memberships without creating an automatic renewal or continuous service; provide that goods, wares, merchandise, or products sent to the consumer shall be considered an unconditional gift if consent is not obtained by the business; amend KRS 365.990 to create penalty.
Index Headings of Original Version Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online
Jump to Proposed Amendments House Committee Substitute 1
House Floor Amendment 1
Senate Committee Substitute 1
Senate Floor Amendment 1
Senate Floor Amendment 2
Senate Floor Amendment 3
Votes Vote History

Actions

Top | Amendments
12/06/21
  • Prefiled by the sponsor(s).
01/04/22
  • introduced in House
  • to Committee on Committees (H)
03/11/22
  • to Veterans, Military Affairs, & Public Protection (H)
03/14/22
  • taken from Veterans, Military Affairs, & Public Protection (H)
  • 1st reading
  • returned to Veterans, Military Affairs, & Public Protection (H)
03/15/22
  • reported favorably, 2nd reading, to Rules with Committee Substitute (1)
03/16/22
  • floor amendment (1) filed to Committee Substitute
  • posted for passage in the Regular Orders of the Day for Thursday, March 17, 2022
03/18/22
  • 3rd reading, passed 75-12 with Committee Substitute (1) and Floor Amendment (1)
03/21/22
  • received in Senate
  • to Committee on Committees (S)
03/22/22
  • to Economic Development, Tourism, & Labor (S)
03/29/22
  • reported favorably, 1st reading, to Calendar with Committee Substitute (1)
  • floor amendments (1) and (3) filed to Committee Substitute, floor amendment (2) filed
03/30/22
  • 2nd reading, to Rules

Proposed Amendments

Top | Actions
Amendment House Committee Substitute 1
Summary Retain original provisions with the addition of a definition for "business" in Section 1 which includes exemptions for banks, credit unions, savings associations, consumer loan companies, and insurers; add "or entity" to the designation of those who may be fined for offenses.
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online

Amendment House Floor Amendment 1
Sponsor S. Westrom
Summary Retain original provisions; except modify the definition of "business" to provide an exemption for entities providing service contracts as defined in KRS 304.5-070 and for providers of in-vehicle subscription services; change references to "30 days" and "60 days" in Sections 3 and 4 to "one month" and "two months" respectively; create a new section of KRS Chapter 365 exempting services provided by businesses operating pursuant to a franchise issued by a political subdivision of the state, pursuant to a license, franchise, certificate, or authorization issued by the Kentucky Public Service Commission, or any service provided by a business regulated by the Kentucky Public Service Commission, the Federal Communications Commission, or the Federal Energy Regulatory Commission; make technical changes.
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Telecommunications - Exemption
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online
Technical Corrections - HB 106/HCS 1

Amendment Senate Committee Substitute 1
Summary Retain original provisions with the addition of an exclusion for providers of roadside assistance or travel subscription services; define "consumer."
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online

Amendment Senate Floor Amendment 1
Sponsor W. Schroder
Summary Retain original provisions; amend definition of "business" to exclude any person or entity regulated under KRS Chapter 304 or an affiliate thereof and an affiliate of any person or entity providing service contracts as described in KRS 304.5-070; exclude from sections 1 to 5 any agreement that may be cancelled by the consumer at any time and provides for a pro rata refund.
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription cancellation, notice of terms and changes, consumer consent
Internet - Subscription, cancellation online
Technology - Subscription, cancellation online

Amendment Senate Floor Amendment 2
Sponsor D. Yates
Summary Retain original provisions, except remove good faith exclusion from penalty provision.
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online

Amendment Senate Floor Amendment 3
Sponsor D. Yates
Summary Retain original provisions, except remove good faith exclusion from penalty provision.
Index Headings Advertising - Subscription, cancellation policies
Commerce - Subscription, cancellation policies
Consumer Affairs - Subscription, cancellation, notice of terms and changes, consumer consent
Technology - Subscription, cancellation online
Internet - Subscription, cancellation online

Last updated: 5/25/2022 2:58 PM (EDT)
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